In the United States, approximately 2.6 million people aged 60 and older may never receive Social Security benefits, making it essential to understand why and how to secure these crucial retirement funds.
With over 77 million Americans currently receiving or planning to receive Social Security, most rely on these benefits to supplement their income during retirement. However, not everyone meets the qualifications to receive these payments.
Why Some Don’t Qualify for Social Security
The Social Security Administration (SSA) has reported that about 3.3% of Americans aged 60 or older are classified as “never beneficiaries”—individuals who will not receive Social Security benefits. These individuals typically fail to meet the necessary work and credit requirements.
Key Requirements for Social Security Eligibility:
- Work History: You must have worked and paid Social Security taxes for at least 10 years.
- Credits: Accumulate a minimum of 40 credits (up to 4 per year), with each credit requiring a certain amount of earned income. In 2025, you’ll need to earn $1,810 per credit.
If you haven’t met these requirements, you could fall into the “never beneficiary” category, which impacts retirement planning for certain groups.
Who Are the “Never Beneficiaries”?
Three primary groups make up those who don’t qualify for Social Security benefits:
1. Late-Arriving Immigrants:
Nearly 49% of “never beneficiaries” are older immigrants who haven’t worked long enough in the U.S. to accumulate sufficient credits.
2. Infrequent Workers:
Individuals who take time off work—often to raise children—comprise 38.9% of this group. These people often fail to meet the 40-credit requirement due to time away from paid employment.
3. Jobs Not Covered by Social Security:
Some workers, particularly in state and local government jobs or the railroad industry, don’t pay into Social Security. These workers may not receive Social Security benefits, but they often receive pensions or other benefits instead.
What If You Don’t Qualify?
1. Survivor and Disability Benefits:
Even if you don’t qualify for retirement benefits, Social Security Disability Insurance (SSDI) and survivor benefits are available for those who meet different eligibility criteria.
For example, a surviving spouse or dependent children might be able to receive financial support after the death of a qualifying worker.
2. Immigrants and Totalization Agreements:
Immigrants from the 30 countries that have a totalization agreement with the U.S. may combine their U.S. work credits with credits earned in their home country to qualify for prorated benefits. However, you need to earn at least 6 U.S. credits to use this option.
3. Spousal Benefits:
Divorced individuals may be eligible for spousal benefits based on their ex-spouse’s earnings if the marriage lasted at least 10 years. This can be an essential safety net for those who don’t have enough credits from their own work history.
How to Secure Your Social Security Benefits
To avoid missing out on Social Security, follow these steps:
- Check Your Eligibility:
- Review your Social Security Statement on the SSA website to verify your work history and earned credits.
- Use the Retirement Estimator:
- The SSA Retirement Estimator tool helps project your potential benefits based on your current earnings and work history.
- Plan for Gaps:
- If you’re close to qualifying but haven’t reached 40 credits, consider working longer to accumulate the required credits before retiring.
- Consult a Financial Advisor:
- If you’re unsure of your eligibility, a financial advisor can help you explore alternative retirement savings options or ensure you meet Social Security requirements.
- Supplement Your Retirement:
- If you’re at risk of becoming a “never beneficiary,” explore other savings avenues like 401(k) or IRA accounts to bolster your retirement income.
Understanding Social Security for Different Employment Situations
Jobs Exempt from Social Security:
Employees in certain government jobs or the railroad industry don’t pay Social Security taxes. Instead, they receive pension benefits through their employer or from the Railroad Retirement Board, provided they meet service requirements.
What Happens if You Die Before Claiming Social Security?
If you die before reaching the minimum eligibility age of 62, you will not receive Social Security benefits. However, survivor benefits may be available to your spouse or dependents. Those suffering from terminal illnesses may also qualify for SSDI to provide financial support.
U.S. Citizens Living Abroad
For most U.S. citizens, it’s possible to receive Social Security benefits even while living abroad. However, certain countries—such as Cuba, North Korea, and several others—may disqualify you from receiving payments while living there.
Exceptions exist for some countries, but eligibility must be checked using the Payments Abroad Screening Tool on the SSA website.
While 2.6 million Americans over 60 may never receive Social Security benefits, it’s essential to understand the reasons behind this and take steps to secure your financial future.
Whether you need to earn more credits, consider spousal benefits, or rely on survivor benefits, knowing your options will help ensure a stable retirement.
FAQs
How many credits do I need to receive Social Security benefits?
You need 40 credits, or the equivalent of 10 years of work, to qualify for Social Security benefits.
Can I still receive Social Security if I haven’t worked in the U.S.?
If your country has a totalization agreement with the U.S., you may combine credits from both countries.
What happens if I don’t qualify for Social Security benefits?
You can explore alternative retirement income options, such as spousal benefits or SSI.
Do government employees receive Social Security benefits?
Certain state and local government employees and railroad workers may not receive Social Security but instead receive pensions.
Can I receive Social Security if I live abroad?
In most cases, yes, but certain countries, such as Cuba and North Korea, may prevent you from receiving benefits while residing there.
